Younger baby boomers face deep shortfall in retirement savings

by Nathan Place | Originally posted on Benefit News

Not all boomers are OK. When it comes to retirement savings, younger baby boomers have significantly less than their older counterparts.

That's according to a study by the Center for Retirement Research at Boston College, which uncovered a striking difference between "late boomers" — those born in 1960 to 1965 — and "early boomers," born in 1948 to 1953. By the time they reached their 50s, the study found, the late boomers had 19% less retirement wealth than the early ones did at the same age.

What could explain this wealth gap? Several demographic and economic shifts contributed, the study said, but the main reason was the 2007-2009 financial crisis.